Archive for March, 2009

It’s an awesome one day event held just twice a year at the University of Houston to teach consumers everything they need to know about wills, bankruptcy, consumer law, insurance law, landlord/ tenant law.. you name it, they’ve got it covered.

Local attorneys, judges and professors teach all of the classes. And the best part- it’s FREE. You do have to register because there are a limited number of seats. It’s from 9am until noon this Saturday, April 4th.

Ok… so you’ve paid for a membership at Sam’s or Costco. But don’t assume that everything is a better deal at the discount warehouses. At 10, we mentioned some of the best buys at Sam’s and Costco, and then some items you can save more money on elsewhere.

Here are some others we couldn’t fit into the broadcast version of the story:

MeatCostco’s meat is a great deal according to the author of a “Smart Money” article.“Top-notch butcher-shop quality meets supermarket prices.”Paper GoodsThe same article lists paper goods as not such a good buy at Costco. We found that Sam’s Club paper products were cheaper, but Costco’s price was lower than Kroger’s. You should remember, though, that are some pretty good coupons out there for toilet paper and paper towels that are doubled and tripled at most grocery stores. They say Milk, Butter and eggs are always good deals at Costco. We only looked at milk in our comparison. It was very close between all 3 stores, Sam’s, Costco and Kroger (.019 per oz. at Sam’s & Costco and .023 at Kroger). Consumer Reports did a very comprehensive survey in 2007. I want your questions or helpful comments for other shoppers. We plan to use them in our “Ask Amy” segment Monday night at 10. Have a great weekend!

Tonight’s consumer investigation showed you which discount warehouse has the lowest prices… Sam’s Club or Costco. And how do the prices at those warehouse giants compare with local grocery store Kroger?

It wasn’t as easy as one trip to Sam’s, Costco and another to Kroger… so I wanted to explain our methodology.

I first went to Sam’s Club, selected 30 items and jotted down the brand, size and count and price of each product. When I took that list to Costco, I quickly learned that store didn’t have all of the same items.

Once we found 30 items of the same product, each store carried different sizes. If there were individually wrapped items in a bulk product, like granola bars or Electrasol dishwasher tablets, we figured the cost per item. If it was something like shampoo, we figured the price per ounce at each store.

According to complaints received by the Office of the Attorney General, certain customers believed they were entering into vehicle purchase agreements. However, customers indicated they were actually signing three-year lease agreements. The situation drew complaints because the customers wanted to own their vehicles outright, and the lease agreements were more expensive than an ordinary vehicle purchase. Among other relief in this settlement, the defendant agreed to implement a restitution fund of more than $78,000 for consumers harmed by this financial scheme.

After reviewing the complaints, the Office of the Attorney General investigated the allegations. That investigation revealed that some McGill sales personnel folded sales contracts in a manner that obscured the customers’ ability to view the entire document. Salespersons told customers that they would receive lower interest rates if their sales contract was prepared on a lease-type document. As a result, though customers were reassured their contract was a purchase, it was actually a lease. Investigators learned that salespeople targeted customers who didn’t speak and read English well.

In other cases, some customers complained that they were misled about key financial details involving the transaction. Certain lease customers were told that the term “residual value,” which appeared on the contract, meant the amount customers would receive if they sold the vehicle back to Don McGi ll after three years. However, “residual value” is actually the balloon amount customers have to pay to purchase their vehicles after the lease expired.

Finally, customers complained that the defendant added expensive options to vehicles, even if those options were not authorized by purchasers. For example, a “LoJack” vehicle security system was routinely included in the purchase or lease price – even if customers did not agree to purchase the security system. In some cases, salespersons assured buyers that the LoJack system would be included at no additional cost, however customers were nonetheless charged up to $2,000 for this system. The cost to the dealership for the system was less than $400.

I have to admit I’m surprised because I don’t receive all that many calls about Don McGill. I’m glad our AG is investigating these types of complaints.